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Eneos and Sumitomo to Produce Green Hydrogen in Malaysia for Export to Japan

Japanese Firms Partner with Malaysian SEDC Energy, Aiming to Boost Hydrogen Supply for Decarbonization Efforts
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Eneos and Sumitomo Corp., two major Japanese corporations, have embarked on a groundbreaking project to produce “green” hydrogen in Malaysia, with plans to export a substantial portion of it to Japan. This initiative, announced on Monday, aligns with global efforts to diversify hydrogen sources, a crucial component in the push towards decarbonization.

The Japanese companies have inked an agreement with SEDC Energy, an entity under the Sarawak Economic Development Corp. in Malaysia. This partnership may further evolve with the creation of a special-purpose company involving the Malaysian collaborator.

This ambitious project will harness power from hydroelectric plants for water electrolysis, a process that generates green hydrogen without carbon dioxide emissions. The target is to produce around 90,000 tonnes of green hydrogen annually by 2030. The scale of the investment is yet to be determined.

In this collaborative endeavor, SEDC Energy will spearhead power procurement and hydrogen production. Eneos brings valuable technical support for production and its proprietary technology for sea transportation of hydrogen at room temperature. Sumitomo’s role encompasses evaluating the project’s feasibility and financing aspects.

Hydrogen, a clean energy source that emits no CO2 when burned, is pivotal for decarbonization across various sectors, including power generation, transportation, and manufacturing. However, production costs in Japan are high due to expensive renewable energy resources.

The Japanese government aims to increase the nation’s hydrogen supply to 3 million tonnes per year by 2030. Eneos and Sumitomo’s project is a significant stride towards meeting this goal, showcasing a commitment to producing and transporting green hydrogen globally. This initiative not only supports Japan’s decarbonization targets but also signals a shift towards sustainable energy practices on an international scale.

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